2 No-Brainer Dividend Stocks to Buy Right Now for Less Than $500

While dividend stocks have long been a popular investment, they don’t seem to be getting as much attention these days. That’s likely related to the market being in a tech stock frenzy over the build-out of artificial intelligence (AI) infrastructure, data centers, and semiconductors.

But a portfolio composed entirely of tech stocks isn’t balanced. Dividend stocks play an important role as well. If you’re already retired, you can use the dividends as income to pay bills and daily living expenses, reducing the amount of money you need to draw down from your retirement account. And if you’re still building wealth, dividend stocks allow you to reinvest in your portfolio by adding to already established positions.

You don’t need a lot of money to get started. And while it’s great if you can add to your positions over time (letting compounding work its magic), you can get started with these two great dividend stocks for just $500.

Three shares of Bank of America stock

Bank of America (BAC 0.49%) is the second-largest U.S. bank, serving more than 69 million consumer and small business clients. Bank of America has a massive network of 3,600 banking locations and 15,000 ATMs. In addition, it processes 2.5 billion transactions a month on its digital network, which includes its mobile app. Average deposit balances continue to grow, rising from $1,921 a year ago to $1,991 in the third quarter of 2025.

Overall, revenue for the bank during its third quarter was $28.1 billion, up 11% from a year ago. The bank saw strong numbers across the board, with consumer banking revenue up 7% year over year to $11.2 billion, and wealth management revenue up 10% to $6.3 billion.

Bank of America stock, which is trading up 22% so far this year, also pays a solid annual dividend of $1.12 per share, which represents a 2.1% yield. Priced at about $53, buying three shares will cost about $160.

One share of UnitedHealth Group stock

UnitedHealth Group (UNH 3.34%) hasn’t fared as well as Bank of America this year; share prices are down 34% so far this year, although most of those losses occurred early in 2025. In fact, UnitedHealth Group stock is up 27% in the last three months.

Problems for UnitedHealth Group stock started in May when it failed to meet earnings expectations in the first quarter. The company also took a $6.5 billion hit in its Medicare portfolio and commercial business segment, which offers employer plans and Affordable Care Act plans.

However, management is changing its Medicare Advantage benefits for 2026 and plans to adjust its Medicare pricing in 2026 and 2027, with the goal of improving its margins. “Repricing within UnitedHealthcare is on track to drive solid operating earnings growth from margin improvement within that business in 2026,” CEO Stephen Hemsley said.

Earnings for the third quarter were much improved from earlier in the year, with revenue of $113.2 billion, up 12% from a year ago. However, earnings of $4.3 billion reflected a low net margin of 2.1%, down from 6% last year.

UnitedHealth Group offers a strong 2.7% dividend yield, paying $8.84 annually. One share of the stock will cost about $330.

Looking at the portfolio

Three shares of Bank of America and one share of UnitedHealth Group are a strong start to a small dividend portfolio, and will cost about $490 of your fictional $500 portfolio.

And if you need another reason to invest, keep in mind that Bank of America is legendary investor Warren Buffett’s favorite bank stock, as his Berkshire Hathaway holds an 8.3% stake in the banking giant — that’s 605 million shares, valued at $32.4 billion.

Buffett is also a major investor in UnitedHealth Group stock, picking up more than 5 million shares in May (while cutting down on shares of Apple). That gives Berkshire Hathaway a $1.6 billion interest in the healthcare company, despite holding a relatively small 0.6% overall stake.